U.S. June Producer Price Index (PPI) came in at 5.5% YoY, below the 6.2% consensus, with the prior revised down to 6%; MoM fell 0.3%, the largest monthly drop since April 2020. Gasoline prices plunged 12%, accounting for nearly two-thirds of the decline in goods. Following the softer CPI print, PPI confirms cooling inflation pressure across the board. Market pricing for a July rate hike has dropped below 15%, with September odds around 45%. Fed Chair Warsh stressed that one month of data doesn't mean "mission accomplished," maintaining "zero tolerance" for persistent inflation.









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